With a residential leasehold premises in Bishops Stortford, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Bishops Stortford with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Bishops Stortford with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Bishops Stortford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Thomas, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Bishops Stortford. Having purchased his flat two decades ago, the unexpired term was of no significance. Thankfully, he realised he needed to take action soon on Extending the lease. Thomas extended the lease at the eleventh hour last January. Thomas and the landlord subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £975.
Ms Chantelle Allen purchased a garden flat in Bishops Stortford in October 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Bishops Stortford with a long lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease end date was in 2091. Considering the 65 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
In 2012 we were approached by Mr and Mrs. V Adams who, having was assigned a lease of a one bedroom flat in Bishops Stortford in April 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Bishops Stortford with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 collected per annum. The lease expiry date was on 27 May 2102. Having 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.